Gunns (GNS) held its annual general meeting in Tasmania today, telling shareholders that its much contested Bell Bay pulp mill will be highly competitive in the global market.
As shareholders arrived for the meeting, around 50 people had stationed themselves outside the company's headquarters in Launceston to protest against the proposed $1.7 billion pulp mill in the Tamar Valley.
Coinciding with the Gunns AGM, the Australia's Wilderness Society lost another legal attempt to block the proposed mill after the Federal Court rejected the group's appeal against an earlier ruling.
In August, the Federal Court dismissed the Wilderness Society's challenge against the federal government's approval process for the mill.
Lawyers representing the Wilderness Society were arguing that the public had not been given enough time to comment on the proposal, and the impact on Tasmania's forests was not properly considered by the government.
The federal court approved the mill last month after doubling the initial number of environmental conditions to 48.
Rubbing salt into the wound, Gunns chairman John Gay said at the AGM that the pulp mill will be ''highly competitive in the global market" due to its location, the quality of wood in the area, the scale and design of the mill and the proximity to the Asian market.
"The competitive position will be further enhanced by the environmental standards under which it will operate."
Mr Gay tried to appease some disapproval saying the mill would not process wood from ancient and old growth forests, with supply to come from regrowth and plantation forests.
Mr Gay also said that the project has been subjected to the most comprehensive approvals process of any mill in the world.
"The Bell Bay Pulp Mill project is a significant development for the Company and its stakeholders."
In his speech Mr Gay also announced that the company made an after tax profit of $75 million for the 2007 financial year and paid a dividend of 14 cents per share.
He says sales volumes remained stable and that there had been significant growth in the company's managed investment business with $152 million of investments throughout the year.
The AGM was forced to close early on heated debate over the pulp mill.
A number of anti-pulp mill campaigners made their way into the meeting on proxies.
They questioned Mr Gay over a number of concerns relating to the mill including pollution and wood supply.
Mr Gay fielded several questions on the pulp mill before deciding to cut the AGM short, at which point heated arguments erupted between the campaigners and Gunns shareholders.
To close, Mr Gay thanked the company's board and staff for their ongoing support, and expressed his regret that they have had to live with harassment and attack.
This comment was likely appreciated, as shareholders had responded angrily after being targeted by the protesters at the AGM.
Shares in Gunns remained flat to close at $3.60.
